Question: The Third Street Eatery is considering a 4 year expansion project that will require an initial fixed asset investment of $ 2 . 0 3
The Third Street Eatery is considering a year expansion project that will require an initial fixed asset investment of $ million. The fixed asset will be depreciated straightline to zero over its year tax life, after which time it will have a market value of $ The project requires an initial investment in net working capital of $ which will be fully recovered when the project is terminated. Estimated sales are $ per year, with costs of $ The tax rate is and the required return for the project is Find the project's NPV Ignore any bonus depreciation.
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